cathy am i right in assuming you get whipped a bit if trend stalls and starts to chop? Is there anything you can do to mitigate losses in this instance? are you exiting on the BBs?
Yes, my theory is not as simple as it seems. I only enter when: there is sufficent room between the MA cross and the Bollinger Bands. the stochastics indicate a nice move. it is in high momentum times of day 9:30 to 12 or 2-4. I exit when. the prices seem to hesitate too much. when it pierces a bollinger band. when the stochastics start to reverse. or the cross fails.
I looked at historical data and wrote on a paper what my entry & exit would be using this system. I started at year 97 and stopped in 99, my conclusion was that it was worthless. It missed the big moves in 97, 98 and 99. I haven't tried 2000, 2001, and 2002 YTD because it felt as a waste of time.
If the MAs crossover and shows a signal for long, but the bar is a black bar(open > close). Will you still take the trade?
I don't strictly apply it but it is a consideration. On a 1 min chart I actually like to enter as the 3 changes direction, something stubborn in me that want's to get those tops and bottoms they say can't be had, assuming the 3 and 13 are at a reasonable distance from the 39( nothing close or converging) Stochastics are a must regarding any entry. If all goes well I will add as the 3 and 13 cross.